The Charitable Trusts is simply a trust that has a charitable beneficiary. It may be a trust that has only charitable beneficiaries, so only charitable organizations may receive assets from the trust. However, more commonly, it is referred to as a charitable split interest trust, in which the charity has an interest, but the trust creator and/or the trust creator's spouse also has an interest. Typically, we see this in the form of a charitable remainder trust or a charitable lead trust. There are different kinds of these trusts, but essentially, in a charitable remainder trust, the grantor or trust creator enjoys income or payments from the trust during their lifetime, or perhaps their spouse enjoys those payments. Then, at the end of a certain period of time, the remaining assets go to charity. In the case of a charitable lead trust, the charity actually receives payments every year, or perhaps more frequently, for a period of time. At the end of that designated time period, the remaining assets will go to the family.
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Video instructions and help with filling out and completing Where Form 1041 Qft Charities
